- Deflationary DeFi Asset
- Ethereum Fee Slump
- Ethereum Community Response
Ethervista, described as the 'Pump.fun' of Ethereum, released its whitepaper on Aug. 31, claiming to be a 'value-compounding deflationary currency' with the token VISTA.
Deflationary DeFi Asset
Ethervista platform continually auto-buys and burns the tokens, thus increasing the floor price each time. The project also promotes a fair launch with a five-day liquidity lock as many rug pulls occur between two to four days after launch. The entire token supply was distributed to the liquidity pool and locked for five days. Swaps accrue a gas fee in ETH, distributed to liquidity providers. The token has a deflationary supply capped at a million, with issuance reducing over time through coin burns.
Ethereum Fee Slump
The launch comes amid growing concerns about Ethereum supply becoming inflationary again as network fees plummet. Since the Dencun upgrade in March, which vastly reduced layer-2 fees, Ethereum layer-1 has been suffering. Ethereum supply is currently inflating by 0.73% per year and has grown by 0.2% since April to reach 120.32 million, according to Ultrasound.Money. Additionally, Ethereum layer-1 revenue is down 99% in the past six months, according to Token Terminal. This has lowered the demand for the asset which is used to pay network fees in gas.
Ethereum Community Response
Ethereum community member Ryan Berckmans refuted some of the FUD, stating, 'Ethereum doesn’t aim to collect fees. Fees are not a goal, they’re a byproduct.'
Ethervista has quickly carved out its niche in Ethereum’s DeFi sector despite current challenges with network fees. It will be interesting to watch the platform's further developments and its impact on the market.
